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THE HAGUE, Netherlands— European Union officials say they have broken up a cross-border gang responsible for cheating EU member countries of 150 million euros in tax revenue. Those arrested are suspected of participating in organized fraud that deprived Germany, the Netherlands, Poland and the Czech Republic of major sums of value-added tax payments.

Last week’s sharp drops and heightened volatility were due in part to the severe debt crisis in Greece and, more specifically, growing fears that other European nations are at risk — especially Spain, Portugal, Italy and Ireland.

The markets forced the European Union into its "shock and awe" rescue package, which means they will be tempted to repeat the tactic just to generate returns, David Blanchflower, professor of economics at Dartmouth College, told CNBC Monday.

Monday’s market euphoria across the world at the terms of the European Union/International Monetary Fund rescue package for the European bond market faded Tuesday as investors sold stocks and took profits on the euro. The worry for investors is whether governments in Greece and Portugal can live up to their end of the bargain and manage to significantly cut government spending in the face of bitter opposition from voters.

The size of the rescue package agreed at the weekend by European Union countries and the IMF is likely to cover the borrowing needs of vulnerable euro zone countries, according to famous economist Nouriel Roubini.

By establishing a 750 billion euro fund to bailout Greece and aid other struggling governments, Germany and other strong European states are chasing a dream—a single European currency and broader European unity—that may have no place in reality.